TUCSON, Ariz., March 20 /PRNewswire-FirstCall/ -- The Providence Service Corporation today announced that it will need additional time beyond what it had previously estimated to complete its impairment analysis and to file its Annual Report on Form 10-K for the year ended December 31, 2008. The Company is therefore postponing its conference call previously scheduled for March 23, 2009 until March 30, 2009.
On March 13, 2009, the Company released preliminary results for its fourth quarter and year ended December 31, 2008 as well as its guidance for the first three months of 2009. These preliminary results and guidance numbers remain unchanged. In its March 13, 2009 release, the Company also stated that it anticipated taking a non-cash asset impairment charge in the fourth quarter of between approximately $35.0 million and $60.0 million, which will be in addition to the $141.0 million impairment charge recorded by the Company at September 30, 2008.
In accordance with its Form 12b-25 filed with the Securities Exchange Commission on March 17, 2009, the Company continues to expect to file its Form 10-K no later than the prescribed due date of March 31, 2009.
First Quarter 2009 Guidance
As previously reported, the Company anticipates revenue of between approximately $170.0 million and $180.0 million for the first quarter of 2009 with estimated diluted earnings per share of at least $0.23. This is based on unaudited actual January and preliminary February results. Diluted shares outstanding in the first quarter of 2009 are estimated at approximately 13.2 million (14.8 million if the effect of the Company's $70 million of outstanding convertible debt is dilutive). Guidance for the first quarter of 2009 includes approximately $1.5 million in costs and expenses related to the amended credit agreement, including arrangement, legal, accounting and other expenses, as well as approximately $300,000 in legal and other fees related to the now abandoned consent solicitation. Guidance does not include any retroactive rate adjustments or revenue pickups from prior quarters, only contracted rates. Mr. McCusker commented, "We have increased confidence in our ability to report at least $0.23 in diluted earnings per share in the first quarter, even after an estimated $0.08 in one-time expenses, based on continued strength seen in March."
Conference Call
Providence will hold a conference call to discuss its results and corporate developments, Monday, March 30, 2009 at 11:00 a.m. EDT (9:00 a.m. MDT and 8:00 a.m. Arizona and PDT). Interested parties are invited to listen to the call live over the Internet at http://investor.provcorp.com/ or http://www.earnings.com/. The call is also available by dialing (888) 680-0865, or for international callers (617) 213-4853 and by using the passcode 13037270. Participants may pre-register for the call at https://www.theconferencingservice.com/prereg/key.process?key=PNFWPX49Y. Pre-registrants will be issued a pin number to use when dialing into the live call which will provide quick access to the conference by bypassing the operator upon connection.
A replay of the teleconference will be available on http://investor.provcorp.com/ and http://www.earnings.com/. A replay will also be available until April 6, 2009 by dialing (888) 286-8010 or (617) 801-6888, and using passcode 43351992.
About Providence
Providence Service Corporation, through its owned and managed entities, provides home and community based social services and non-emergency transportation services management to government sponsored clients under programs such as welfare, juvenile justice, Medicaid and corrections. Providence does not own or operate beds, treatment facilities, hospitals or group homes, preferring to provide services in the client's own home or other community setting. The Company provides a range of services through its direct and managed entities to over 87,000 clients through 1,039 contracts at December 31, 2008, with an estimated 6.3 million individuals eligible to receive the Company's non-emergency transportation services related to its LogistiCare operations. Combined, the Company has a nearly $1 billion book of business including managed entities.
Certain statements herein, such as any statements about Providence's confidence or strategies or its expectations about revenues, results of operations, profitability, earnings per share, contracts, collections, award of contracts, acquisitions and related growth, growth resulting from initiatives in certain states, effective tax rate or market opportunities, constitute "forward-looking statements" within the meaning of the private Securities Litigation Reform Act of 1995. Such forward-looking statements involve a number of known and unknown risks, uncertainties and other factors which may cause Providence's actual results or achievements to be materially different from those expressed or implied by such forward-looking statements. These factors include, but are not limited to, reliance on government-funded contracts, risks associated with government contracting, risks involved in managing government business, legislative or policy changes, challenges resulting from growth or acquisitions, adverse media and legal, economic and other risks detailed in Providence's filings with the Securities and Exchange Commission, including its latest Form 10-K. Words such as "believe," "demonstrate," "expect," "estimate," "anticipate," "should" and "likely" and similar expressions identify forward-looking statements. Readers are cautioned not to place undue reliance on those forward-looking statements, which speak only as of the date the statement was made. Providence undertakes no obligation to update any forward-looking statement contained herein.
